Types of Damages for Breach of Contract in Indiana

In breach of contract cases in Indiana, there may be different types of damages awarded, depending on the facts and circumstances of the case and the type of contract. The party who files a claim is called the plaintiff.

The plaintiff has to prove all of the elements of breach of contract, which includes proving that a valid contract did exist. The exact definition of what a valid legal contract is differs by state, which is why it is important to consult with an Indiana lawyer for more information.

Generally, however, contracts are usually written documents that contain information on an agreement made between two parties. A contract will create mutual obligations between the parties who sign as well as provide them with certain legal rights.

Even though contracts are usually written, they can be formed orally. Oral contracts, however, are more difficult to enforce than written contracts and, in certain situations, cannot be used at all.

If a breach of contract does happen, plaintiffs often request compensatory damages. This category of damages is meant to provide monetary compensation to the party that did not breach the contract for their losses.

Compensatory damages may include general damages as well as specific damages. General damages compensate a plaintiff for their losses that were related directly to the subject matter of the contract.

Specific damages are used to compensate a plaintiff for the losses that did not directly come from the breach, for example, damage to their reputation.

In addition to damages that provide monetary compensation, there are also other categories of damages that may be awarded in a breach of contract claim, such as:

• Remedies in Equity: Remedies in equity do not involve monetary compensation. One common example is specific performance, which requires a party to fulfill their obligation under the contract.
• Quantum Meruit: This means, “what one has earned,” in Latin. These damages compensate a plaintiff for the reasonable value of the services that were performed by one party for the other.
• Restitutional Damages: Restitution is used to put the non-breaching party back to the position they were in before a breach happened. For example, this may mean refunding money that was deposited.
• Nominal Damages: These are symbolic damages that are awarded when no true harm was caused by the breach. These damages can be as low as one dollar.
  • These damages are used to formally acknowledge that a plaintiff suffered a wrong and can serve as a basis for recovering attorneys’ fees.
  • These may also be used as a basis for requesting punitive damages.

What Is a Breach of Contract in Indiana?

A breach of contract happens in Indiana when a party to a contract does not fulfill their obligations. A contract typically outlines what the parties have to do and how they have to do it in order to hold up their end of the deal.

If someone who signed a contract does not follow the terms, they are in breach of contract. If this occurs, the party that did not breach the contract may be able to file a civil lawsuit against the party that breached it to request compensation for losses they incurred.

How Do Contract Breaches Happen in Indiana?

Breach of contract cases can arise in many different ways in Indiana, including a partial contract breach and a complete contract breach. In addition, breaches of contract may be classified as minor breaches or substantial breaches.

What type of breach occurred will often help determine the damages for breach of contract that may be available. Generally, a contract may be breached in three general ways:

• Minor Breach: A minor breach is when a small detail in the contract is not completed or accurate, such as a typographical error. With these breaches, the contract can still be performed.
• Material or Fundamental Breach: Material or fundamental breaches are the most common form of breach that leads to a lawsuit. In these situations, performance by the other party to the contract is not possible.
• Anticipatory Breach: Anticipatory breach, or anticipatory repudiation, may happen when a party informs the other that they will not or cannot complete their contract obligations.

There are also other ways contracts may be violated, for example, if they were unconscionable, illegally formed, fraudulent, or if there was a mistake of fact in the contract terms.

Statute of Limitations for Breach of Contract in Indiana

The statute of limitations for a breach of contract claim in Indiana will depend on the type of contract. For a written contract, the limit is ten years. For an oral contract, the time limit is six years.

For a written contract, the time starts ticking when the contract is breached. For an oral contract, the time starts ticking when all legal elements for filing a claim are met.

To find out more about the statute of limitations that will apply to an individual’s contract, they should schedule an Indiana lawyer consultation.

Liquidated Damages Requirements in Indiana

It is common for liquidated damages clauses to be included in contracts in Indiana when it may be difficult to predict an actual damages amount at the time the contract was entered into. These clauses will be enforceable when they represent a reasonable estimate of the potential damages and are not a penalty.

When the liquidated damages clause is excessive, punitive, or not clearly tied to a reasonable estimate of loss, it can be considered unenforceable.

Punitive and Emotional Distress Damages Rules in Indiana

In Indiana, punitive damages may be awarded in cases of malicious, fraudulent, intentional, or oppressive conduct, which is proven by clear and convincing evidence. Punitive damages in Indiana are capped at the greater of three times the awarded compensatory damages or $50,000.

Emotional distress damages in Indiana, which may also be referred to as pain and suffering damages, can be awarded in personal injury cases. These damages compensate plaintiffs for non-economic harm, such as mental anguish. Typically, these damages are proven using medical records and professional testimony.

Are There Other Contract Remedies Available in Indiana?

Yes, in the State of Indiana, there may be other available contract remedies, such as:

• Termination of Contract: Many contracts contain clauses that give reasons a contract may be terminated and the compensation that can be provided.
• Rescission of Contract: This happens when the contract is voided by a court, which means it is legally unenforceable.
• Injunctions: Injunctions are court orders making a party stop doing something or do something.

Do I Need a Lawyer for Help With Breach of Contract Damages in Indiana?

Figuring out the specific damages that might be available to you in your Indiana breach of contract case usually requires assistance from an Indiana breach of contract lawyer. Your contract lawyer will explain the type of contract you entered into as well as the damages that may be available.

It is easy and free to use LegalMatch’s attorney matching services and will only take you as little as 15 minutes online. It is very important to get ahead of any potential contract issues before they come up and cost you time and money. There is no obligation to hire any lawyer matches, so get started today.